When you do a Forex trade, you are purchasing an amount of currency, termed a lot. The amount of currency in one lot depends upon the type of account you have. In a standard account, one lot is usually equal to U.S. $100,000; in a mini account, one lot is $10,000.

But Forex trading fiscal statement are leveraged, which means you don’t have to own that expensive lot of currency; you just have to control it, and if you do, any profit it earns is yours. To take the right to control a lot of currency, you place up a much smaller amount of money in a sort of leasing agreement called a margin deposit. In a standard account, to control that U.S. $100,000, you must place up $1,000 of your own money; in a mini account, to control $10,000, you need to place up $100.

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Trading on the Foreign Exchange market, or Forex, has become increasingly well loved due in no small part to its sheer size and volume of trading. There was a time when only the large investment banks and other “institutional” vehicles of finance could play in the currencies market but now it is possible for just about anyone to invest in the Forex. Just as with equities or commodities traders, investors in the Forex need some type of strategy when deciding on currency pairs and when to enter and exit a position.

Scalping is one of many Forex investment strategies and at its simplest involves anticipating small-term movements in the exchange rates. Forex scalpers are like the polar opposites of those who use the buy-and-hold approach because they are only looking to enter and exit a position quickly—make their profit and run. Scalpers may only hold a position for a few hours—and in the farthest suitcases—or mere minutes. These “hit and run” investors look for market indicators specifically known to affect rates on the Forex.

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The Foreign Exchange or Forex Market is potentially more profitable and easier to trade than the stock market, yet few people take the time to learn about Forex trading principles.

The good news, whether you are experienced in Forex trading, or if you’re an equity trader looking at the Forex market for the first time, is that many of the techniques that are used when trading equities are equally as valuable when they are used in Forex trading. The principles of Fundamental analysis are a good example, so let’s take a closer look.

When you are trading in the equities market you use fundamental analysis techniques to determine the long-term value of a company and the likelihood that it will continue to generate returns that are in line with your investment goals.

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Total trades:33
Total pips: 112
Winning trades: 26
Lossing trades: 7